Jungfrau Railway Group Records Loss, But Positive EBITDA In First Half Of The Year

The Jungfrau Railway Group can look back on a difficult first half of 2020. Covid-19 and the economic consequences were reflected in the business results. In the first half of the year, 100,600 visitors traveled to the Jungfraujoch. That is 78.6% less than during the same period last year. The prescribed early end of the winter season and the almost three-month closure of the tourist railways led to the first half-year loss in the history of Jungfraubahn Holding AG. The loss amounted to CHF 11.5 million (2019: profit of CHF 23.9 million). Despite the serious effects of the corona pandemic, the Jungfrau Railway Group was able to generate a positive EBITDA of CHF 5.9 million. From today's perspective, the company assumes

The company is solidly positioned in terms of liquidity and equity. The financing of operations and the completion of the V-Bahn project have been secured. With the V-Bahn, the Jungfrau Railway Group has a project of the century that will put a new exclamation mark on the tourist map from December 2020.

After the best January in the history of the Jungfrau Railway, excursion traffic to the Jungfraujoch - Top of Europe collapsed in mid-February due to the spread of the corona virus. From March 14, 2020, the Jungfrau Railway, like all of the company's other tourist railways, had to close. The group business as well as the entire intercontinental tourism ceased completely from mid-March. For the first time since World War I, the Jungfraujoch - Top of Europe remained closed for 83 days.

Even if the company implemented the first cost-saving measures in February, a loss in the first half of the year could not be averted. Operating costs were reduced and short-time work was applied for for a large part of the workforce. That was and is central to safeguarding jobs in the region and restarting operations.

With the exception of the two main projects - the V-Bahn and the publicly financed renovation of the Mürrenbahn - many investments have been postponed. In the first half of the year, CHF 52 million was invested. Despite the lockdown and high investment activity, the interest-bearing debt as of June 30, 2020 was only CHF 10 million.

The tourist connections were reopened on June 6, 2020. In the first half of the year, with a three-month interruption, a total of 100,600 guests traveled to the Jungfraujoch - Top of Europe. This corresponds to a decrease of 78.6%. In the Adventure Mountains, the Jungfrau Railway Group recorded net transport income of CHF 3.5 million, which means a decrease of 62.2%. The strongly fluctuating visitor numbers, which are dependent on the weather, remain a particular challenge since the reopening. The Jungfraubahn Group therefore pursues short-term planning for both the use of rolling stock and staff.

After the stormy start to the 2019/2020 winter sports season, more ski visits were recorded over the holidays and in January 2020 than in the 2018/2019 season. For the reporting period from January 1, 2020 to the early end of the season on March 14, 2020, the Jungfrau Ski Region, in which the Jungfrau Railway Group has a turnover share of over 60%, registered 744,700 ski visits and thus a minus of -17, 6% compared to the previous year. For the Jungfrau Railway Group, the winter sports business resulted in net transport income of CHF 17.8 million (-6.7%).

The winter months were challenging for the main strategic project - the V-Bahn. Between October and December 2019 alone, storms caused 22 days of absence in construction site operations. Thanks to the commitment of all construction workers, we were able to make up the gap that had meanwhile been lost. Despite the closure of the tourist railways due to Covid-19, the construction sites could always remain open during the first half of 2020, taking into account the relevant hygiene and distance rules. A milestone was the 15-week rope pull for the Eiger Express, which lasted from the end of April to mid-August.

The overall renovation of the Grütschalp-Mürren adhesion railway continued without interruption. After the new construction of the cable car in 2006, the railway line, the stations and the rolling stock between Grütschalp and Mürren will now be renewed. This means that the Lauterbrunnen - Mürren (BLM) mountain railway will implement the Disability Equality Act for public transport on time by 2023. The investments in the renewal of the BLM and its follow-up costs are guaranteed by the Canton of Bern.

Since the reopening of the tourist railways, the positive effect of the various promotions in Switzerland with TV spots and advertisements can be observed. In July and August alone, 153,000 people traveled to the Jungfraujoch - Top of Europe. The majority of the guests were Swiss. The multi-day and multi-month passes on offer were also very popular.

The Jungfrau Railways adventure mountains also attracted many local guests, and the opening of the borders in Europe meant that more and more visitors from neighboring European countries could be welcomed. As the figures for the first half of the year show, however, this is not enough to compensate for the lack of international customers. In order to be ready for the upturn and to keep each other up to date on developments, there is still regular contact with the main markets in Asia.

The implementation of the V-Bahn generation project is in full swing. The work is on track on all construction sites. This means that the opening of the Eiger Express 3S cable car and the entire terminal in Grindelwald Grund can take place one week earlier, on December 5, 2020. The Jungfrau Railway Group is thus giving the Jungfrau Region, the Canton of Bern and Switzerland a positive boost in these challenging times. Winter sports in the Jungfrau Ski Region will thus experience an increase in attractiveness, including by strengthening public transport and saving 47 minutes from Interlaken Ost to the Jungfraujoch.

The ongoing spread of Covid-19 (coronavirus) continues to have negative effects on the business of Jungfraubahn Holding AG. The financial consequences of the pandemic cannot currently be estimated. From today's perspective, the company assumes that a positive EBITDA can be expected for 2020 as a whole, despite a loss.

Renewal of the JBH Board of Directors

In addition, the Board of Directors of Jungfraubahn Holding AG has passed the following resolutions as part of ongoing development: The Board of Directors wants to gradually reintroduce the 12-year term of office that was suspended during the planning and implementation of the V-Bahn as planned. Therefore, the oldest member of the JBH BoD, today's Vice President Ueli Winzenried, will step down at the upcoming General Assembly (AGM) on May 17, 2021 and not be replaced, as the number of board members will be six again. It is planned that Heinz Karrer will take over the office of Vice President. The current President, Thomas Bieger, will step down at the 2022 General Meeting and Heinz Karrer will be proposed to the General Meeting as President.